CONFIDENTIAL

pressure is particularly strong among the expatriate police officers on contract terms who will have to decide very soon whether to

transfer to pensionable terms.

28. For presentational reasons in Hong Kong, there would also be advantage of announcing the scheme soon after the Nationality Bill starts to be implemented in the autumn. It would enable us to point

out that something was being done for both expatriate and local

staff.

29.

Given the need to consult the Chinese and the staff

associations, it is unlikely that we will be in a position to

announce the scheme until the beginning of next year. But we should aim to put a paper to the Chinese before the end of September with a

view to announcing the scheme after JLG XVII.

Next steps

30.

Since 18 months have elapsed since Ministers last considered

this matter and our proposals have not yet been put to the Prime Minister, the next step would be to minute to her. I attach a

draft.

A R Paul

WEDABH/11

CONFIDENTIAL

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